The impacts of climate change has been viewed as a threat to various economic sectors with agriculture being the most affected than other sectors. This forced households to respond in different ways including participation in trade to minimize and resist their impacts. While various studied have reported on different ways of climate change adaptation through agriculture, the assessment of trade related adaptation techniques is inadequate. This necessitated the need to understand the role of trade in adapting to climate change in Kyela district. The paper studies trade as one of the strategies used by rural households to reduce the risks and uncertainties of climate change while sustaining the resilience of their livelihoods. Data were collected through documentary review, household interviews, focus group discussions (FGDs), key informant interviews (KIIs) and field observation. The qualitative data and the quantitative data were analysed by content analysis and Package for Social Sciences (SPSS), respectively. The results show that households are aware of climate change and have involved in trade as one of climate change adaptation strategies in Kyela district. Trade has improved access to new and clean technology, the required goods and services for adaptation and updated climate information, which consequently lead to improved resilience among households. The study recommends that the government should encourage high participation in trade and improve rural markets to provide equal opportunity for participation and profitability through trade which is essential for both improved livelihoods and resilient agricultural production.